Continental Counteracts the Global Recession
"We sincerely regret the impact that this decision will have on our employees and their families in Blythewood and appreciate their years of service," Kregg Wiggins, senior vice president of powertrain, was quoted as saying by Autonews.
Continental explained that such a decision is understandable because the Newport News plant has the capacity to manufacture the whole production line with reduced costs. Moreover, the supplier says an expansion plan will generate no less than 300 jobs by the end of 2013.
"In the second half of 2008, we already hit the brakes hard, making noticeable and painful cuts in all areas for 2009 in order to be amongst the winners when the markets recover,"Continental Executive Board chairman Dr. Karl-Thomas Neumann concluded.
A recently conducted research unveiled that the supplier market will be seriously hit in the first months of 2009, especially if large automakers, such as General Motors, Chrysler or Ford, file for bankruptcy. However, it appears that some of these suppliers are already prepared for difficult period said to begin in early 2009, with large suppliers preparing several cost-cutting measures to counteract the recession.
According to figures provided by Continental, the company currently employs 146,500 workers at approximately 200 locations in 36 countries.